What Congress Didn’t Learn from BAPCPA

As every consumer bankruptcy attorney knows, in 2005 Congress bowed down to ten years of pressure from the financial services industry and passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA).  Whether purchased or persuaded, lawmakers listened to the industry that was already in the process of creating one of the greatest financial crises in U.S. history and built …

Representative Tammy Baldwin Introduces Resolution Against Servicer Releases

For more than a year, we’ve been watching key players in the “investigation” by Attorneys General across the country into fraudulent and otherwise illegal mortgage and foreclosure practices drift toward an inadequate settlement based on insufficient information.  Individual AGs who object too strenuously to the rush to settlement, like New York Attorney General Eric Schneiderman, are ignored, reviled or even …

Patrick McHenry’s Shameful Treatment of Elizabeth Warren

Max guest posted today on Mandelman Matters, calling the Deputy Republican Whip’s treatment of “our nation’s only consumer advocate” at hearings of the House Financial Services Sub‐Committee on Government Oversight and Reform yesterday “a complete and utter embarrassment to all of his constituents”.  His behavior was simply “shameful” to be kind about it. McHenry’s harsh statements to Professor Elizabeth Warren, including …

21% HAMP First Year Redefault Rate

From Professor Adam Levitin on Credit Slips. The Congressional Oversight Panel has a new HAMP report out. Like all COP reports, it’s long and chock full o’ analysis. There’s an executive summary up front, but some of the most important points are only in the report proper (especially pp. 100-111). I think there are three big things to take away …

Overview of the Government’s Programs to Reduce Principal on Underwater Mortgages

Via ProPublica, Dec. 17, 2010, by Karen Weise The Obama administration has been increasing its support for programs to induce banks and others to trim loan balances for homeowners that owe more than their homes are worth. Here’s an overview of the three programs trying to increase the number of underwater borrowers who can get help. See related story: Fannie …

Survey Finds Banks Still Foreclose on Homeowners Seeking Loan Mods

ProPublica, Dec. 16, 2010, by Karen Weise In May, we first reported on how disorganization at banks caused homeowners to lose their homes while still in the loan modification process — something that’s not supposed to happen under the rules of the government loan modification program. Treasury officials said they were working to fix the problem, but nine months later …

Congress Finds BAPCPA Ineffective?

From the Bankruptcy Lawyers Blog. Late last week, the Congressional Research Service, the public policy arm and “Congress’ think tank,” released a report entitled “Consumer Bankruptcy and Household Debt” which focused on the effect of its 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) in reducing consumer bankruptcy filings. As we all know, filings have increased every calendar quarter …

Those Contrite Mortgage Servicers Have Plenty to Be Sorry for

Another excellent article by Abigail Field at Daily Finance. Executives from the mortgage servicing industry go before the Senate today, and they’ll try to save face by apologizing for their industry’s role in the foreclosure mess. One theme sure to be touched on is how the foreclosure documentation problems — robo-signing and all — are just ‘technical’ errors. Another theme …

Obama Administration: “Nothing to See Here” on Foreclosure Crisis

From Naked Capitalism. The Obama Administration is entirely predictable. It ever and always sides with large corporate interests, while trying to create the impression that it is actually concerned for the welfare of the average citizen. Admittedly, the occasionally tough talk with little follow through feeds a perverse spectacle of plutocrats sulking, pouting, and claiming that they are really, really …

Foreclosuregate: Time to Break Up the Too-Big-to-Fail Banks

From Seeking Alpha contributor Ellen Brown: Looming losses from the mortgage scandal dubbed “foreclosuregate” may qualify as the sort of systemic risk that, under the new financial reform bill, warrants the breakup of the too-big-to-fail banks. The Kanjorski amendment allows federal regulators to pre-emptively break up large financial institutions that — for any reason — pose a threat to US …